Plea to scrap Euro rules will help economy

Jun 4 2009 by Adrian Pearson, The Journal

REGENERATION bosses have urged the European Union to scrap rules stopping them bringing a multi-million pound boost for the region’s economy.

European Commissioners are considering changing spending rules which will take the brakes off a planned £225m spending pot.

Staff working for Alan Clarke, head of development agency One North East, know they need to find money to match almost every pound they spend in European cash.

And as the recession continues they have seen their ability to act hit by EC rules.

This has forced Mr Clarke’s European team to start negotiations with the Government and the commission, which is preparing a re-think on funding requirements.

If the rules are changed it could mean hundreds more jobs created in 2009 as Mr Clarke authorises officers to speed up long term plans.

Last night Liberal Democrat MEP Fiona Hall said she would urge Whitehall to allow the changes.

“This is just what we need now to help us through this bad patch,” she said.

“But there have been a series of measures put forward by the commission which the British Government has been quite reluctant to take advantage of. These changes will not go through if the Government objects to them, and that means we risk missing out on money.”